Goodyear's Guide To Lean Product Development - Dozuki Workshop Series
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Becoming lean is important for virtually all industries and disciplines. But when it comes to product development, applying lean fundamentals often fails. Join Norbert Majerus, Sr Master Black Belt at Goodyear, for Goodyear's Guide to Lean Product Development. Norbert will reveal how Goodyear successfully implemented lean principles, overcame obstacles, and course-corrected the mis-application of key principles. This workshop will provide insight into: • Navigating the costs of applying lean initiatives • Maximizing your company's revenue • Creating flow and stability • Eliminating waste in R&D • Collaborating with your stakeholders for value stream profitability ...and more Learn even more at http://dozuki.com
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Goodyear's Guide To Lean Product Development - Dozuki Workshop Series
- 2. Goodyear's Guide to Lean Product Development This presentation may contain confidential and / or proprietary information. This presentation may not be copied or disseminated without the express written consent of the Goodyear Tire & Rubber Company.
- 3. Goodyear’s Guide to Lean Product Development
- 4. Goodyear's Guide to Lean Product Development Cait Emma Smith Director of Outreach Dozuki Cait@Dozuki.com | @CaitEmmaSmith
- 5. Goodyear's Guide to Lean Product Development Norbert Majerus Lean Champion Goodyear Norbert.Majerus@goodyear.com | Norbert.Majerus@roadrunner.com
- 6. • Global company – 42 manufacturing facilities in 22 countries • Third largest tire company - $20 Billion in annual sales • 3 Innovation Centers – Akron, Ohio and Luxemburg and Hanau/Germany – 2,500 professionals At Goodyear, we release about 1,500 new (innovative, high value added) SKU’s every year around the world – 4,000 learning cycles - $450 Mi/yr Business Overview Goodyear's Guide to Lean Product Development
- 7. Successful lean research and development transformations in probably less than 5% of companies • Hard to see the work • Hard to see benefits • Focus on waste can be counterproductive • Good variability in research and development • Lack of good benchmarks What makes Research and Development such a difficult target? Lean in R&D Goodyear's Guide to Lean Product Development
- 8. Goodyear's Guide to Lean Product Development The R&D Current State Throughput 0 200 400 600 800 1000 2005 2007 2009 2011 2013 Cycle Time Rating 0 25 50 75 100 125 2005 2007 2009 2011 2013 0 30 60 90 120 1988 1994 2000 2006 2012 Product Life Cycles 0.0 3.5 7.0 10.5 14.0 9092949698'00'02'04'06'08 Safety Incidents 2000 2003 2006 2009 2012 Product Warranty Costs 0 125 250 375 500 2007 2009 2011 2013 R&D Spending ($Mi) (Iterations NAT business – consumer) Cannot be business as usual
- 9. Goodyear's Guide to Lean Product Development Typical R&D Value Stream Money Collection Marketing / Sale Distribution Production Product Development Technical Feasibility Commercial Feasibility Ideas / Innovation Product Industrialization
- 10. 0%! 10%! 20%! 30%! 40%! 50%! R&D Raw Materials Manufacturing SAG Transport Goodyear's Guide to Lean Product Development Direct Cost to Business
- 11. Goodyear's Guide to Lean Product Development Application of Lean 0% 10% 20% 30% 40% 50% R&D Raw Materials Manufacturing SAG Transport
- 12. Goodyear's Guide to Lean Product Development Influence on Profitability of Value Stream Applying lean to the “R&D shadow” is a lot more attractive than applying it to the R&D cost Indirect influence on profitability
- 13. Profit = Volume * (Price - Cost) How can we leverage lean principles for the indirect influence? Understanding the Shadows Goodyear's Guide to Lean Product Development (The traditional place for lean) R&D decides ~70% of product cost
- 14. Goodyear's Guide to Lean Product Development Maximizing Revenue Current Product New Product Difference in Collectable Margin Use lean to provide the speed and agility to hit the optimal market window (offensively and defensively) Hitting or missing this movable window is worth $$$$ / Day
- 15. R&D Leverage Goodyear's Guide to Lean Product Development Optimum time to launch 10% R&D Savings Cost of Time
- 16. Managing R&D • Purpose of Research and Development – Develop profitable VS’s and reusable knowledge • Research and Development must be considered an investment - not a cost • Any savings from waste elimination should be re-invested in capability development Goodyear's Guide to Lean Product Development
- 17. Step 1: More Work with a Flat Budget Goodyear's Guide to Lean Product Development 0 200 400 600 800 1,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 Appl Fund Also created the resources to work on improving the process Throughput (Iterations NAT business – consumers)
- 18. Step 2: Organization Goodyear's Guide to Lean Product Development • R&D is about creating knowledge – Organized in functions based on skills • Projects must be managed horizontally – across the functions R&D Manufacturing Sales Distribution Project 1 Project 2
- 19. Goodyear Matrix Goodyear's Guide to Lean Product Development Advanced Concepts Technology Programs NAT Consumer NAT Commercial Latin America Off Highway EMEA Consumer EMEA Commercial Asia Pacific Tire&MoldEngineering MaterialsScience TirePerformancePrediction ProjectManagementOffice(PMO) InformationTechnology ProductQuality&PlantTechnology GlobalEngineering&ManufacturingTechnology GIC*LGIC*A Cross-Functional Teams Functional Expertise (resources) • Empowered teams of experts – sometimes self directed • Significant change in management and leadership required • Supporting, coaching role • Respect for people • Focus on process and alignment
- 20. Start Over Specify Value Focus on Value Stream Create Flow and Stability Implement Pull Step 3: Five Steps to Get Lean Goodyear's Guide to Lean Product Development For the customer while providing opportunity for growth (Think end-to-end) Value Creation, Not Cost Reductions Work to Perfection Kaizen / CIS
- 21. • Work on the right product • “Market Back” Innovation • Try a lot, evaluate fast • Discard the “losers” fast • Invest in the winners Goodyear's Guide to Lean Product Development Value For The External Customer
- 22. • Every new product developed when needed • A process so fast and agile that competition cannot follow • No compromise on safety and quality Goodyear's Guide to Lean Product Development At Goodyear, the Internal Customer Wanted: 2000 2002 2004 2006 2008 2010 2012 ProductWarrantyCosts 0.0 3.5 7.0 10.5 14.0 90 92 94 96 98 '00 '02 '04 '06 '08 SafetyIncidents Delivery before efficiency
- 23. • Make Work Visible – Visual Planning • Use Project Managers – Manage horizontally • Level Resources • Schedule at 70% of Capacity Goodyear's Guide to Lean Product Development Principles / Results – Delivery to the Business 28% 29% 31% 59% 82% 87% 92% 95% 98% 2005 2006 2007 2008 2009 2010 2011 2012 2013 %OTDEndToEnd
- 24. Start Over Specify Value Focus on Value Stream Create Flow and Stability Implement Pull Work to Perfection Kaizen / CIS Five Steps to Get Lean Goodyear's Guide to Lean Product Development (Think end-to-end) For the customer while providing opportunity for growth
- 25. Goodyear's Guide to Lean Product Development Focus on End-to-End Value Stream • Before Lean – focus on the performance of a function • Now – focus on the profitability of the value stream • How – • Collaboration of all functions in the value stream towards creating customer value and profit • All stakeholders engaged on day one – no hand-offs, no surprises - skin in the game • Empowered teams of experts GATE 1 GATE 2 GATE 3 GATE 4 GATE 5 GATE 6 STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6 Product Concept Screening Business Evaluation Product / Process Dev. Industrial- ization SOP / Launch Product Monitoring PCP: Product Creation Process
- 26. Goodyear's Guide to Lean Product Development Concurrent Development • Manufacturing involved in earliest stages • “Skin in the game” • Help develop • Concurrent development • R&D remains involved through the first year of production • Ready before the launch Manufacturing R&D Late Start Concurrent Launch Work
- 27. Start Over Specify Value Focus on Value Stream Create Flow and Stability Implement Pull Work to Perfection Kaizen / CIS Five Steps to Get Lean Goodyear's Guide to Lean Product Development (Think end-to-end) For the customer while providing opportunity for growth
- 28. Goodyear's Guide to Lean Product Development Creating FLOW • Alignment – Relay Race • Leveling of Resources • Eliminate waste • Waiting • Watch the WIP (inventory)
- 29. Goodyear's Guide to Lean Product Development Creating SPEED • Lean Principles for Speed • Focus on the critical path • Manage knowledge – Model ipo. experiment • Watch the WIP (CT = WIP/Throughput) • Overlap tasks A fast innovation process is efficient and creates a competitive advantage
- 30. Goodyear's Guide to Lean Product Development Modeling and Knowledge Reuse • Use knowledge to build good computer modeling or “predictive” tools • Test to validate and improve the models • Allows quick set based and DOE’s Tires for Chevy “VOLT” were developed virtually with a vehicle model supplied by GM – no tire/car built before “approval” Tires and vehicle were developed concurrently
- 31. Goodyear's Guide to Lean Product Development Overlapping Tasks Tire Build Tire Build Design Mold Eng. Mold Mfg. Construc6on Modeling Tire Tes6ng Materials Development Design Mold Eng. Mold Mfg. Construc6on Modeling Tire Tes6ng Materials Development Prepare Prepare Prepare Prepare Prepare Prepare Prepare I T E R A T I O N K I C K O F F M E E T I N G
- 32. Goodyear's Guide to Lean Product Development Results Cycle Time Rating 0 30 60 90 120 2005 2006 2007 2008 2009 2010 2011 2012 2013
- 33. Five Steps to Get Lean Start Over Specify Value Focus on Value Stream Create Flow and Stability Implement Pull Work to Perfection Kaizen / CIS Goodyear's Guide to Lean Product Development (Think end-to-end) For the customer while providing opportunity for growth
- 34. Goodyear's Guide to Lean Product Development Creating Pull • Airplane analogy • Circle • Slow down in flight • Wait for landing slot Process 3Process 2 Scheduler Scheduler Process 1 Process 3Process 2Process 1 Push System Pull System FIFO
- 35. Start Over Specify Value Focus on Value Stream Create Flow and Stability Implement Pull Work to Perfection Kaizen / CIS Five Steps to Get Lean Goodyear's Guide to Lean Product Development (Think end-to-end) For the customer while providing opportunity for growth
- 36. Goodyear's Guide to Lean Product Development Kaizen / Kaikaku / CIS Incremental Improvement “Kaizen” Radical Improvement “Kaikaku” Improvement • Standard work • Standard problem solving process
- 37. Start Over Specify Value Focus on Value Stream Create Flow and Stability Implement Pull Work to Perfection Kaizen / CIS Five Steps to Get Lean Goodyear's Guide to Lean Product Development (Think end-to-end) For the customer while providing opportunity for growth
- 38. Goodyear's Guide to Lean Product Development Goodyear Financial Results • Reduced Business Volume • Flat R&D budget -400 -100 200 500 800 2005 2006 2007 2008 2009 2010 2011 2012 2013 Investment in LEAN PD Get the process right and the results will follow
- 39. Goodyear's Guide to Lean Product Development Product Awards
- 40. Goodyear's Guide to Lean Product Development Lean Principles Project Management Knowledge Management Goodyear Lean R&D TalentManagement Innovation Leadership Processes/ Operation CustomerCentered Exploration Technology Development Product Development
- 41. Goodyear's Guide to Lean Product Development 1. Learn the principles – apply them correctly • Develop champion and get sponsor 2. Change from the inside out 3. Educate leaders 4. Eliminate waste in R&D – reinvest resources in capability development and innovation 5. Leverage R&D influence through the value stream for highest return 6. Collaboration among all stakeholders for value stream profitability 7. Trace results to the bottom line How-To
- 42. Goodyear's Guide to Lean Product Development Conclusion • With lean you can have it all, the delivery, the speed, the efficiency and the quality in product development • Results help – Most impressive results can be achieved by leveraging product development in the whole value steam
- 43. Goodyear's Guide to Lean Product Development Any Questions? Norbert will field live questions from the audience for a few minutes. Type your questions into the Q&A portion of the workshop window.
- 44. Goodyear's Guide to Lean Product Development Ask Questions Online Continue the conversation with Norbert on Dozuki Answers Dozuki.com/Answers/Ask/Product_Development
- 45. norbert.majerus@goodyear.com norbert.majerus@roadrunner.com B: 330 796 2318 C: 330 801 3184 Goodyear's Guide to Lean Product Development Thanks Contact Information